Global Community Global Commitment 2008 Corporate Responsibility Report Prepared by AMR Corporation About This Document AMR’s commitment to sustainability includes responsible production of this document. Its horizontal format is designed for easier on-screen viewing. We have endeavored to embed hot links within the report to previous reports and other digital resources outside this document to increase its value to readers and avoid unnecessary duplication. Please print it only if necessary. 1 AMR Corporation • Corporate Responsibility Report Dear Friends of AMR Corporation: For more than 80 years, through good times and bad, AMR Corporation (AMR) has sustained its position as one of the world’s leading airlines. We have not done it alone. Our success has been built on the support of our customers, employees, shareholders, and the communities we serve and call home. In turn, we have done our best to make AMR a good place to work, a good neighbor, a positive contributor to the economy, and a reasonable investment. The theme of this year’s corporate responsibility report is commitment. The report aims to provide a clear picture of AMR’s commitment to being a responsible corporation and describe the steps AMR is taking to meet the commitments made to the company’s many constituencies. The report also highlights how AMR’s employees demonstrate genuine care and citizenship in communities around the world beyond compliance with government rules and regulations. This year’s report has been enhanced in two important ways. First, it contains much more information than last year’s report, in keeping with AMR’s commitment to communicate with employees, customers, suppliers, communities, and investors. Second, the report provides more examples of AMR employees volunteering their time and talent to bring the value of these activities to life. The choices AMR makes will always be driven by the values and aspirations that have sustained the company for more than 80 years. We are committed to improving our performance each and every year. I encourage you to chart our progress in the years to come. Gerard Arpey1 Chairman, President, and CEO AMR Corporation and American Airlines 1GRI standard disclosure 1.1 Global Community • Global Commitment 2 3 AMR Corporation • Corporate Responsibility Report Contents 02 Letter from the CEO 05 About This Report 07 Our Global Committment 11 Governance 21 Focus on Safety 29 Focus on Environment 47 Focus on Employees 53 Focus on Diversity 63 Focus on Communities 73 Focus on Reliability and Customer Service 79 Appendix A: GRI Index 83 Appendix B: Greenhouse Gas Methodology 88 Appendix C: Fleet Inventory Global Community • Global Commitment 4 About This Report2 This report is our first corporate responsibility report (CRR) and represents our efforts to expand the scope of our reporting to include more in-depth social and economic aspects of AMR Corporation (AMR). Close followers of AMR will note this was one goal set forth in our 2007 environmental responsibility report (ERR). We are happy to have achieved that goal and present this CRR, our first fully integrated record of corporate citizenship, economic impact, and environmental performance. This CRR is for calendar year 2008. This report has been completed to meet the Global Reporting Initiative (GRI) Level C reporting requirements for AMR, the parent company of American Airlines (American) and its regional affiliate, American Eagle (Eagle). Unless otherwise specified, any reference to AMR indicates that the subject material applies broadly to both airlines. Where constraints associated with data collection have limited our reporting ability in select areas, we have estimated relevant values or included statements indicating whether we believe the incomplete measurements are material. 2GRI standard disclosure 3.1-3.8, 3.10-3.11, 4.14-4.15 5 AMR Corporation • Corporate Responsibility Report This report is organized to provide a broad overview of AMR’s corporate responsibility efforts. In the first section we provide a brief profile of AMR and our commitment to responsible corporate behavior. This is followed by a thorough description of our corporate governance policies. The remaining sections address key business issues: safety, environment, employment, diversity, community, and reliability. Many of our readers will be interested to know the type and scope of community involvement, volunteerism, and general philanthropy in which we and our employees participate. To provide some insight into this part of our culture, we have included a small description of select activities at the end of each major section. We continued our efforts to engage our stakeholders during the production of this CRR to ensure and enhance transparency. Internally, the participation of our departments and business units continues to expand. Externally, we continued our collaboration with our Ceres stakeholder advisory team introduced in our 2007 ERR. We sincerely thank each of these individuals. Their efforts continue to enhance our ability to report and the quality of the information. AMR’s commitment to corporate responsibility includes environmentally sensible production of this document. Its horizontal format is designed for easier on-screen viewing. We hope that for most readers this will eliminate the need to print this report. With this CRR, we reaffirm our commitment to produce a CRR annually. Our goals for future reports will include evaluating increased use of hyperlinks to previous reports and other digital resources to increase its value to readers and eliminate the duplication of information easily obtained elsewhere. We welcome feedback regarding our corporate responsibility efforts and this report. For more information about this report, please contact Mr. Tom Opderbeck at [email protected]. Global Community • Global Commitment 6 Our Global Commitment3 The history of AMR can be traced back to 1929. Today, American is a global airline with service to more than 250 cities in 50 countries, and we take pride in bringing people together. Based in Fort Worth, Texas, AMR’s operations are almost entirely within the airline industry. The company carries over 100 million passengers and transports more than a half million tons of cargo annually. In addition, American is a founding member of the oneworld Alliance®. A complete organizational profile is available atwww.aa.com/aa/i18nForward.do?p=/ amrcorp/newsroom/amr-corporation.jsp and is included in our annual report filed each year with the U.S. Securities and Exchange Commission (SEC). Corporate responsibility has different meanings for many organizations. At AMR, we view it as our responsibility to do our part to influence global solutions for the benefit of generations to come. The scale of our operations affords us the opportunity to affect positive change around the world. We appreciate this opportunity and take pride in employing practices that positively impact our commitment to diversity, corporate citizenship, and environmental performance — the major platforms of our corporate responsibility program. Like any natural system, these platforms are deeply connected and do not stop at national or continental boundaries. For this reason, AMR’s global commitment to corporate responsibility touches every department in every corner of our global organization and every aspect of our business. 3GRI standard disclosure 2.1-2.9 7 AMR Corporation • Corporate Responsibility Report Although the airline industry is a complex and changing industry, we have always believed that our responsibility to employees is to: • Provide competitive pay and benefits • Ensure a respectful and safe work environment • Embrace diversity and promote inclusiveness • Extend opportunities for career growth and development Our customers’ needs can be simply expressed: • Be safe and secure • Arrive at destinations on schedule • Receive bags and cargo on schedule and in the expected condition • Interact along the way with competent, caring, and pleasant individuals We strive to make a positive contribution to the many communities we serve around the world by: • Connecting developing and mature markets • Providing high-quality employment opportunities • Protecting environmental resources • Supporting local and regional economies • Sharing our time, talent, and other resources with local non-profit organizations Our long-standing and global commitment to diversity, environmental responsibility, and ethical business practices is fundamental to our operations. It is also a key to our sustained success and why our employees, customers, and communities place their trust in AMR. We understand that practicing corporate responsibility is not always easy. Compromise is sometimes required. But when done right, sustainable practices create a new sense of optimism and belief that economic success and corporate responsibility are not mutually exclusive. Indeed, these practices provide a more hopeful and constructive way to organize our business activities that inspire and motivate others to embrace a new outlook in diversity, corporate citizenship, and environmental performance. Global Community • Global Commitment 8 AMR Global Corporate Responsibility Statement As a global airline carrying more than 100 million passengers and more than practices takes many forms — from ethical governance to our commitment to 500,000 tons of cargo a year, AMR promotes commerce, trade, and economic diversity and inclusion, to our focus on safety, the environment, and giving back to